This office lease form is a standard default remedy clause, providing for the collection of the difference between the rent due and owing under the lease and the rents collected in the event of mitigation.
The Vermont Default Remedy Clause is an important legal provision that outlines the actions and remedies available to parties involved in a contract in the case of a default or breach. It serves as a safeguard to protect the interests of both parties and provides clarity on the course of action in case one party fails to fulfill their contractual obligations. In Vermont, there are two primary types of Default Remedy Clauses: Liquidated Damages Clauses and Acceleration Clauses. 1. Liquidated Damages Clause: This type of clause specifies a predetermined amount of damages that the breaching party must pay to the non-breaching party in the event of a default or breach. The purpose of including a liquidated damages' clause is to avoid the complexities and costs associated with proving the actual damages incurred. The predetermined amount should be a reasonable estimate of the expected damages and not categorized as a penalty. In Vermont, the enforceability of such clauses is subject to judicial scrutiny to ensure reasonableness. 2. Acceleration Clause: An acceleration clause is another type of Vermont Default Remedy Clause, which allows the non-breaching party to demand immediate payment of the entire contract amount if there is a breach. This means that upon a default, the non-breaching party has the right to request the full amount owed rather than receiving payments as originally agreed upon. The inclusion of an acceleration clause ensures that the non-breaching party is not further disadvantaged by a continued relationship with a defaulting party. However, it is important to note that Vermont law requires good faith efforts to mitigate damages under either type of Default Remedy Clause. This means that the non-breaching party has a duty to minimize its losses by taking reasonable steps to mitigate damages and not intentionally exacerbate them. The Vermont Default Remedy Clause provides clarity and certainty to parties involved in contractual relationships by establishing predefined remedies for breaches or defaults. By incorporating these clauses, parties can better protect their interests and reduce the potential for contentious disputes.
